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Network Services Announcement

This morning Network Services announced that they will, over the next six months, move all retail distribution activities presently provided by Network Services to Gordon and Gotch.

“The ANF have been in consultation with both Bauer and Gordon and Gotch over the last few months. As this is a delicate matter we have respected the confidentiality of this announcement due to the number of staff affected,” said ANF CEO Alf Maccioni.

A number of the issues raised by the ANF have been addressed in the FAQ’s.

The ANF sees this as business as usual this should not affect Newsagents negatively.

Meanwhile if you have any questions in regards to the attached please either contact your ANF representative or your Bauer contact.

The following statement was received by the ANF this morning:

Bauer Media has made a high level decision to move all retail magazine distribution activities provided by Network Services to Gordon & Gotch, ensuring a robust and stable magazine distribution platform for the future. From a newsagency perspective, all that changes is that magazines currently delivered to newsagents by Network Services will now be delivered and invoiced by Gordon & Gotch.

With this decision, we can focus on creating great magazines by investing in our brands and working with your members to drive copy sales. We will continue to support and develop our long-standing newsagent exclusive trade program, Connections with Bauer Media, and our more recent innovation, the first-in-market magazine loyalty app, Reader Rewards.

As this is simply a change of distribution service provider, the Bauer Media newsagency contracts will remain in place.

A transition plan is being drafted. All stakeholders will be kept informed of final dates, plans and cut over details.

Following the final distribution date, Network Services will continue to trade for several months to finalise retailer returns, publisher payments and transitional activities. We don’t expect Network Services to cease operations before June 2016.

For newsagents with security deposits, this amount will be refunded in full along with any accrued interest. Bank guarantees and other financial guarantees will be released at the same time.

There continues to be a dedicated Bauer Media Retail Sales team, which will manage the relationship with the independent newsagency channel. We will remain dedicated to delivering best-in-class promotional activities to drive sales and create in-store experiences, thereby building our respective businesses. There will also continue to be dedicated Marketing, Circulation and Allocations teams for Bauer Media’s products.

All stores will receive the email attached, as well as the specific FAQs that will answer any immediate questions. Further information will be provided to all stakeholders at appropriate times during the transition period.

Network Services, Gordon & Gotch and Bauer Media teams are working hard to ensure a smooth and seamless changeover. We will provide you with further details and timings in due course.